Buying your first house is exciting, to say the least! It can also be stressful. It goes without saying that you want to make your first home buying experience as successful as possible. But what are the most important things to consider for first-time home buyers in Northern Colorado?
We’ve got you covered! Here are seven useful tips to help guide you through your home-buying journey.
Start saving early
Before you go into your first home buying process, it’s vital to start saving money early. Some of the things to consider are your down payment, closing costs, and, finally, your move-in expenses.
Your down payment will, of course, depend on the type of your mortgage. The typical mortgage down payment ranges from 3.5% to 20%, so keep that in mind. Your closing costs could typically be from 1.5% to 2.5% of the loan amount. Then, finally, depending on how you decide you want to move, you’ll want to budget for movers, moving trucks or pizza for your buddies!
Identify your needs
Another essential tip for first-time home buyers is to know your goals. Before you start house hunting, identify what type of house you want. Do you want a single-family home, townhome or a condo? Are you okay with shared walls, small lots but close to town? Or are you more interested in the most bang for your buck and rather a bigger house, more land, but possibly a longer commute? These are things you need to take into consideration when buying.
Check your credit
Your credit score will decide if you qualify for a mortgage and determine your interest rate later on. The higher your credit score, the better. Even more so today, with the new LLPA’s, credit plays a large role! So, be smart about it and do everything in your power to boost your credit score before you start house hunting.
Explore mortgage options
Before you start your house search, it may be a good idea to check your mortgage options. There are various mortgage loan options available such as FHA loans and VA loans and then Conventional and Portfolio Loans. You need to weigh out all your options before you choose the best one for your needs. A great place to start is to discuss with a banker or a mortgage lender.
Choose a reliable real estate agent
Working with a reliable and experienced real estate agent can make all the difference when you’re a first-time home buyer. Choose someone who will represent you in the best way possible and ensure you find a good property for a good price.
Pay for a home inspection
Hiring a professional home inspector to examine your new home and report on any issues is one of the most important things when you’re a first-time home buyer. A home inspection is always a worthwhile investment. It will cost you in Northern Colorado about $600-$1000 depending on all of the services you choose. Better safe than sorry, right?
Buy adequate home insurance
Another tip to have in mind is to get homeowners insurance before closing on your new home. Do your research on insurance policy options and consider your house’s needs (for instance, check if your insurance covers water damage due to potential flooding issues during spring in Colorado). Also, you’ll want to compare and contrast a flat deductible versus a percentage deductible for Wind and Hail in Northern Colorado. The difference in premium could be substantial.
As you can see, there are many things to consider when you’re buying a house. From your mortgage rates to your credit score, you need to go above and beyond to prepare yourself for a successful home buying experience.
If you need any help along the way, we’ve got your back! Soukup Real Estate is a team of passionate and professional real estate agents focused on helping first-time home buyers find their dream homes. Northern Colorado real estate is our life, and we’d be happy to help you start your new life here!
